Four roommates share an off-campus house and equally share the cost of rent. Everyone says that she values a clean house, yet the house is usually dirty. To an economist, a clean house in this case represents
A) a common resource problem.
B) a public good.
C) a natural monopoly.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

A clean house in this case represents a common resource problem because it is a shared resource and each roommate's use of the resource affects the others. Despite everyone valuing a clean house, the lack of individual incentives to clean can lead to a tragedy of the commons situation where nobody takes responsibility for cleaning.

Four Roommates Share an Off-Campus House and Equally Share the Cost